Which of the following is an investing activity?
A)Payment of salaries.
B)Purchase of inventory.
C)Sale of held for trading investment.
D)Collection of loan receivable.

Question

Quizplus · Accepted Answer

Sale of held for trading investment is an investing activity as it involves the sale of investments held for the purpose of generating profit from fluctuations in price, such as stocks or bonds traded on a stock exchange.

Note: 
A) Payment of salaries is an operating activity as it relates to the day-to-day running of the business. 
B) Purchase of inventory is also an operating activity as it relates to the purchase of goods for resale. 
D) Collection of loan receivable is a financing activity as it involves the collection of funds borrowed by the company.

Which of the Following Is an Investing Activity